The claycourt event in Hamburg is one of the final tune-ups before the French Open begins May 25.
Youzhny was ousted in the first round by Fernando Verdasco 6-3, 6-2 with Verdasco dominating. He broke Youzhny's serve four times in the romp.
No. 14-seeded Jo-Wilfried Tsonga started off as though he was going to join Youzhny as he lost the first set without winning a game. But he pulled out the second set in a tiebreaker and was sharp in the third for a 0-6, 7-6 (7-5), 6-2 win.
Also Monday, Michael Llodra beat Argentine Guillermo Canas 7-6 (9-7), 6-2 and Albert Montanes dismissed Mardy Fish 6-1, 6-3. Other wins were turned in by Ivo Minar, Simone Bolelli, Juan Ignacio Chela and Olivier Rochus.